Ridley FID is a slight positive

Canadian and U.S. Morning Comments

January 4, 2017

AltaGas is moving forward with the Ridley Island Propane Export Terminal (RIPET). We view this final investment decision (FID) favourably, though it was not unexpected as the company noted along with its 2017 capital budget that a decision was expected shortly. That said, we had not previously included it in our estimates and valuation. We estimate the project could represent $1-$2 per share of value for AltaGas. We move up our target price by $1 as questions regarding the contractual agreements underpinning the terminal remain.

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